Legislative Analysis
Phone: (517) 373-8080
SUNSET DATE AND RATE CHANGES FOR CERTAIN FEES
http://www.house.mi.gov/hfa
UNDER NREPA
Analysis available at
House Bill 5007 (H-3) as passed by the House http://www.legislature.mi.gov
Sponsor: Rep. Donovan McKinney
House Committee: Appropriations
Complete to 9-19-23
(Enacted as Public Act 140 of 2023)
SUMMARY:
House Bill 5007 (H-3) would amend the Natural Resources and Environmental Protection Act
(NREPA) to extend the sunset of certain fees collected by the Department of Environment,
Great Lakes, and Energy (EGLE) under the act.
The bill would raise the fee rates and extend the sunset (expiration date) to October 1, 2027 for
the following fee:
Groundwater discharge permit fee (section 3122) – Facilities or municipalities that
discharge wastewater to the ground or groundwater pay this fee. The fee rates range
between $200 and $3,650 based on facility size. This range would increase to between
$240 and $7,500 under the bill. These provisions are set to expire on October 1, 2023.
The bill would extend the sunset (expiration date) to October 1, 2027 for the following fees:
Sewer expedited permit fee (section 4112) – Persons requesting an expedited review
of an application for a conventional gravity sewer extension of 10,000 feet or less of
sewer line, a simple pumping station and force main, or a small diameter pressure sewer
and grinder pumping station pay this fee. The fee rates range from $1,000 to $4,000
based on project scope. These provisions are set to expire on October 1, 2023.
Air quality fee (section 5522) – This fee is paid by owners or operators of industrial
facilities or electric providers that emit air pollutants as defined by the EPA. The fee
rates range from $250 to $50,000 based on annual emissions or emissions capacity.
These provisions are set to expire on October 1, 2023.
Hazardous waste generator or transporter or treatment, storage, or disposal
Solid waste surcharge (section 11525a) – Owners or operators of landfills pay a fee
of 12 cents per cubic yard of solid waste received. Captive facilities pay an annual fee
ranging from $500 to $3,000 based on tonnage received. These provisions are set to
expire on October 1, 2023.
Electronic device manufacturer registration fee (section 17303) – Manufacturers of
covered electronic devices offered for sale pay an annual $3,000 registration fee unless
the Electronic Waste Recycling Fund balance has reached $600,000, at which time this
fee is not charged. The fund balance was $267,624 after FY 2021-22. These provisions
are set to expire on October 1, 2023.
House Fiscal Agency Page 1 of 3
Electronic device recycler registration fee (section 17317) – Recyclers of covered
electronic devices offered for sale pay an annual $2,000 registration fee. These
provisions are set to expire on October 1, 2023.
In addition, the bill would extend the sunset on fees for secretary of state look-up services for
watercraft, off-road vehicles, and snowmobile records, from October 1, 2023 to October 1,
2027.
MCL 324.3122 et seq.
FISCAL IMPACT:
House Bill 5007 (H-3) is likely to increase revenues for EGLE by extending the sunsets on
certain fees collected by the department. EGLE would no longer be able to collect this revenue
beyond the sunset date without these eliminations. Annual revenue generated by these
sunsetting fees is as follows:
Fee Fee revenue
Air Quality Fees $9,400,000
Electronic Device Manufacturer Registration 215,000
Electronic Device Recycler Registration 50,000
Solid Waste Surcharge 5,900,000
Groundwater Discharge Permit Fees 4,490,000
Sewer Expediated Permit Fees 31,800
,TOTAL $20,086,800
Data source: EGLE
Revenue is also likely to increase due to the rate increases for groundwater discharge permits
from between $200 and $3,650 to between $240 and $7,500. This range increase is projected
to generate an additional $680,000, which has been built into the FY 2023-24 EGLE budget.
It is unlikely the bill would affect costs for EGLE. The department currently collects these fees
and would continue to do so under the bill. However, the bill could increase costs for local
governments that own or operate fee-subject facilities by indefinitely extending fees previously
scheduled to sunset. It is unlikely the bill would affect local government revenues.
Record Look-Up Fees
The bill would substantially increase annual revenue to the Department of State (DOS). The
bill would extend the sunset on fees for secretary of state look-up services for watercraft, off-
road vehicles, and snowmobile records to October 2027. Revenue from these fees is
deposited into the Transportation Administration Collection Fund (TACF) which supports
secretary of state's vehicle and driver services. The bill would also raise the fees for record
look-up services. The current fee for record look-up services is set by the legislature in
boilerplate in the annual General Government appropriations act. The current fee is set at
$11.00. The bill would raise the fee $4.00 to $15.00.
House Fiscal Agency HB 5003 as enacted Page 2 of 3
All other record look-up fees are authorized under the Michigan Vehicle Code and the State
Personal Identification Card Act. House Bills 4990 and 4991 would extend the sunset on and
raise fees for these other record look-up services. For a summary and fiscal impact of all
record look-up fee increases and TACF fee changes please refer to the House Fiscal
Agency legislative and fiscal analysis for House Bills 4990 and 4991.
Fiscal Analysts: Austin Scott
Michael Cnossen
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 5003 as enacted Page 3 of 3
Statutes affected: Substitute (H-3): 324.3122
House Introduced Bill: 324.3122
As Passed by the House: 324.3122
As Passed by the Senate: 324.3122
House Concurred Bill: 324.3122
Public Act: 324.3122
House Enrolled Bill: 324.3122